ITEM:		CONSENT CALENDAR
18.	CONSIDER FUNDING REBATES IN THE CALIFORNIA AMERICAN WATER SYSTEM BETWEEN JANUARY 1, 2018 AND THE AVAILABILITY OF FUNDING FROM THE CAL-AM GENERAL RATE CASE
Meeting Date:			January 24, 2018	Budgeted:	No
From:			David J. Stoldt,	Program/	N/A
			General Manager	Line Item No.:
Prepared By:			Stephanie Locke	Cost Estimate:	$270,000
General Counsel Review: N/A
Committee Recommendation: The Administrative Committee reviewed this item on January 17, 2018 and recommended approval.
CEQA Compliance: This action does not constitute a project as defined by the California Environmental Quality Act Guidelines section 15378.

SUMMARY: The District and California American Water’s (Cal-Am) Rebate Program is funded through a customer surcharge that is renewed as part of Cal-Am’s General Rate Cases (GRC) every three years. The 2015-2017 GRC ended December 31, 2017, and all Rebate funding was expended. The decision on the 2018-2020 GRC (filed in July 2016) is anticipated between now and June 2018. Rather than shutting the Rebate Program down and reducing the current momentum, staff is requesting the Board authorize advance funding to continue the program until Cal-Am’s GRC is approved and funds are available.

The pending GRC includes a request for $1.6 million in Rebate funding for the three-year period. Between January 1, 2018 until the GRC is approved with funding for the Rebate Program, Cal-Am is not collecting the conservation surcharge and is unable to pay out for Rebates. When the GRC is approved with funding for the Rebate Program, Cal-Am has agreed to reimburse MPWMD’s expenditures. There is a slight risk that Rebate Program funding will not be approved by the CPUC, although all previous requests for funding for the Rebate Program has been approved since 2007.

District will be funding Rebate advances from its general reserve fund until Cal-Am reimburses the District. Cal-Am has agreed to reimburse the District based on the amounts issued during the same period last year (2017). The District will process and pay rebates up to a maximum of $270,000 (six months) and invoice Cal-Am for the expenditures when/if they receive GRC approval.

The District/Cal-Am Rebate Program is credited with a significant portion of the water savings since the Cease and Desist Order in 2009. The program offers extensive and generous Rebates that motivate customers to purchase and install water efficient appliances. Shutting the program down until funding is available would negatively impact the community and the vendors. In 2011, the program was suspended awaiting the 2012 GRC approval. Once funding became available, it took approximately 18 months to achieve current participation levels. Given the urgency of conservation and the Cease and Desist Order (CDO) milestones, staff recommends the Board authorize interim funding.

RECOMMENDATION: By adopting this item with the Consent Calendar, the Board approves interim funding up to $270,000 through June 2018 for the Rebate Program from the District’s general reserve fund. All District expenditures will be reimbursable by Cal-Am when a rebate fund is approved in the GRC.

EXHIBIT

None

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